Bonds muted as Brexit poll draws closer

The Australian bond market is mixed with investors treading water as the final Brexit countdown begins.

"Brexit is the event to watch overnight with exit polls likely to drive gyrations in global markets before the official results," ANZ economists said.

"Bookies seem relatively sure of their ground, picking just 25 per cent odds that the UK will vote to leave the European Union tomorrow, despite polls that continue to suggest it is too close to call."

Global rates were trapped in tight ranges overnight with Australian markets also keeping in a tight orbit, they said.

"Ahead of the referendum in the UK today we expect little movement in markets," ANZ's economics team said.

Market moves could be dramatic if the `leave' camp wins, they warned.

"With liquidity already lower and volatility higher, a leave vote, should it eventuate, would most certainly throw the cat bodily among the pigeons," ANZ economists said.

At 0830 AEST on Thursday, the September 2016 10-year bond futures contract was trading at 97.780 (implying a yield of 2.220 per cent), up from 97.760 (2.240 per cent) on Wednesday.

The September 2016 three-year bond futures contract was at 98.360 (1.640 per cent), down from 97.370 (1.630 per cent).